Today, the Arizona House passed Senate Bill 1439 by a vote of 36-22. (roll call here)

The Constitutional Tender bill allows businesses and the state government to accept payments in gold or silver. It specifies that legal tender in Arizona consists of all of the following:

1. Legal Tender authorized by Congress.

2. Specie (containing gold or silver) coin issued at any time by the U.S. government.

3. Any other specie that a court of competent jurisdiction rules by a final, unappealable order to be within the scope of state authority to make legal tender.

The bill previously passed the state senate by a vote of 17-11. Since there was a House amendment which tightened up some of the language, constitutionally, the bill will need one final vote on the floor of the State Senate before going to Jan Brewer’s desk for a signature.

HOUSE AMENDMENT

The amendment passed by the house makes two technical revisions to the bill on the same Constitutional principle. They are as follows:

1. Strike “and taxes” from line 11 – “LEGAL TENDER” MEANS AN AUTHORIZED MEDIUM OF EXCHANGE FOR THE PAYMENT OF DEBTS AND TAXES.

This part of the amendment is constitutionally-sound. It makes sure the bill is in line with Article 1, Section 10 of the Constitution, which makes reference to debts, but not taxes. It reads, “No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts.”

2. Strike line 25-26: B. ANY TAX THAT IS DUE AS A CONSEQUENCE OF A TRANSACTION THAT INVOLVES SPECIE LEGAL TENDER SHALL BE PAID PROPORTIONATELY IN THE SAME LEGAL TENDER.

The is constitutionally-sound for the same reason as above. Taxes, however, can be debts, so at best, this text was redundant.

BACKGROUND INFORMATION

Currently all debts and taxes in Arizona and the rest of the United States are either paid with Federal Reserve Notes (dollars) which were authorized as legal tender by Congress, or with coins issued by the U.S. Treasury — very few of which have gold or silver in them.

The United States Constitution states in Article I, Section 10, “No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts.” The Constitutional tender act is a big step towards that constitutional requirement which has been ignored for a long time in every state of the country. Such a tactic would achieve the desired goal of abolishing the Federal Reserve system by attacking it from the bottom up – pulling the rug out from under it by working to make its functions irrelevant at the State and local level.

“Over time, as residents of the State use both Federal Reserve Notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve Notes do will lead to a “reverse Gresham’s Law” effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve Notes). As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the State’s treasury, an influx of banking business from outside of the State – as people in other States carry out their desire to bank with sound money – and an eventual outcry against the use of Federal Reserve Notes for any transactions.”

Once things get to that point, Federal Reserve notes would become largely unwanted and irrelevant for ordinary people. Nullifying the Fed on a state by state level is what will get us there.

Without a single act of Congress, the Federal Reserve system can be brought to its knees by passing such bills in states all over the country.

ACTION ITEMS for Arizona

1. Contact your State Senator. Strongly, but politely, let them know you want them to vote YES on SB1439. Remind them that you expect them to support the Constitution, and that includes Article 1, Section 10 which says that the state needs to allow gold and silver to be used as legal tender. SB1439 will help facilitate this constitutional duty and you want a YES vote.

2. Share this information widely. Please pass this along to your friends and family. Also share it with any and all grassroots groups you’re in contact with around the state. Please encourage them to email this information to their members and supporters.

Money is worthless, gold is worthless (except to some scientific and medical applications), food and textiles are the basic currency. Trade is allowed, exploitation is not. Be fair in your weights and measures and do not seek unfair profit over others. When the economy crashes, you will be glad to work a day on the farm to have a share of the harvest to consume and to trade for other items.

The Fed is a privet company, made up of foreign bankers, this is not a conspiracy it is a fact. It has masqueraded as part of the US government since LBJ’s first order of business was to sign laws to re-establish the central banking that JFK fought so hard to bring down. Remember the Kennedy half dollar, silver notes, Kennedy, had foreseen this was a bad thing and took deliberate steps to stop it, he was a genius!

Currency and base metal coins are unsecured promissory notes. As such, their value comes from faith that others will accept them in trade. Given that, supply and demand also have an effect on value, of course. The way credit works now, there is no particular limit on the supply, so that effect is small. Currency is now irrelevant. Nearly all transactions can now be done with checks, credit cards, debit cards, direct deposit, electronic payment, Pay Pal,etc. The rest could also be done without currency, except maybe black market stuff.The problem is that the whole system depends of faith and faith is fickle. Now, I need to go study that reference site.

I am strongly in favor of money based on gold and silver but I have a few questions.

How does this actually work? Does the state mint gold and silver coins? What would be their value, certainly not dollars, perhaps some new denomination like oz of silver. Would items in stores still be priced in dollars or oz of silver? Or maybe every day life is still in dollars but you go to a bank to exchange your state minted coins for dollars before you purchase anything. I don’t think gold certificates that are redeemable in gold are legal tender according to the Constitution it has to actually be coins used by the public. How would I buy a car if dollars were no longer used in my state? Would credit cards still work or for that matter any financial transaction that did not involve direct person to person payment? Could I write a check?

@dmellon While these are all important questions, they are way ahead of where things are with the status quo – and with this bill. this is the first step, removing barriers to use gold and silver as tender within the state as the constitution requires.

There’s no creation of centralized rules as to how transactions would be priced, used, set – etc. The bill simply authorizes gold and silver to be used as payment of debt.

The rest, for now, would be up to you and the person or people in the transaction.

From there, as people learn how to use gold and silver, it’s going to be some time before the market grows around it….but this is a good first step.

And gold is any better. It has tang able value. Second that is not in the constitution. Much of the revolutionary war was financed with paper money. Third look at global market gold fluctuates more than the dollar. You think a more volatile currency will not be manipulated.

One man. who is appointed, not elected, has so much poer that he can ruin our country. Bernanke is doing a good job of ruining us by printing more and money, soon we will be using our currency for toilet paper.

Please STOP the BULLSHIT! Arizona, or any other state, cannot nullify anything as long as they are a sub corporation of the United States of America, Inc.! The only way any state can nullify federal laws is for it to UN-INCORPORATE and give up all the federal goodies that go with being an EMPLOYEE of the FED!

Golds value can be made to what ever the global kings want it to be 10/1 means the states cant print money but they can make gold and silver coins the feds does print money sum 15 trillion of debt did our government float thru policy over are history but wall street has all the government’s on earth beat on printing wealth that they cant cover they’ve made securities bonds and derivatives. To the tune of over 1000 trillion that they have sold talk about a ponzi scheme with no gold foundation or anything to back it up this is the fruit of the tree of no controll or regulatory rules

Fiat currency isn’t the problem; it’s who controls it that is the problem. Austrians are full of shit because they are hoping to turn a profit on their personal gold holdings, which means “conflict of interest”. Bill Still 2016!

the federal reserve has been acting illegally since around the 40’s if not mistaken congress just has not acted upon the act, i agree the fed needs to be removed and audited charges filed of treason with all and to all involved

Gold money will not free us. The result of both communism and capitalism are the same, concentration of wealth and power in the hands of an elite few. You won’t want to hear it, but Hitler’s Germany was a threat to the internationalists for a reason(even though Hitler was controlled opposition). Visit http://realcurrencies.wordpress.com/ for alternative solutions. A combination of localized and regional currencies, a national greenback and individual state’s issuing colonial scrip or state greenbacks…also see the Icelandic solution, interest free banking, Swedish JAK bank…

So what do you think is the alternative, Ashley? Either you’re for communism, monotheism, or for some form of capitalism, b/c in order for this size country to exist, you have to be under one of them to function. So would you rather be free or a slave? That’s basically what it comes down to.

Too bad all the rich banks stole the gold and silver long ago. Gold and silver have a new meaning in our times my friends. Technology dictates this anomaly. Anything can be used as currency, food and energy resources are far more valuable than any precoius metal IMO. I cannot quote exactly but i believe it should be known, “Do not store your riches on earth.” If only our government would hear and understand this.

Sure Upshaw, now google Ben Franklin and colonial scrip and don’t forget the elites and central banks can afford to buy up up far more gold, and pm’s in general, than most average joes which means they will be in a position, once again, to buy back control of our system.

I seem to remember Dick Nixon (yes…. he WAS a crook) took us off the gold standard. And I wouldn’t be a bit surprised to learn Ft. Knox is EMPTY. After all, the public hasn’t been allowed to see it for decades. Probably at the Federal Reserve or now in China. Wouldn’t it be a good to make sure there’s enough gold available BEFORE abolishing the Federal Reserve?

Both Lincoln and Kennedy were assassinated because they intended to pull out of the central banking monopoly and go to the gold standard. The Fed. is nothing more than the front men for the central banking cartel which owns them.

By way of Article 10 or Caliber .30, one way or the other, we must turn the tide or live in well-deserved infamy for all eternity for not saving our country. Though we have the Righteousness, may God give us the strength.